UPDATE: HMRC have now announced that the upgraded Tax Registration Service is expected to be rolled out in Autumn 2021 (rather than Summer 2021 as noted below). Stay tuned for more updates as they arrive! In light of delays, HMRC has announced that the deadline for registering certain trusts and updating records under the Trust Registration Service ("TRS") is likely to be extended from 10 March 2022 to 12 months after the date of the delivery of the upgraded TRS. The implementation of the EU’s Fifth Money Laundering Directive in the UK has had an impact on the registration of trusts, as more trusts are now required to register with the TRS who were previously not required to register (although there are still some trusts that are ex...

Coronavirus Support Measures The Coronavirus Job Retention Scheme (i.e. the furlough scheme) will be extended until the end of September 2021. Whilst there will be no change to the terms for employees, as businesses re-open employers will be asked to contribute. From July, they will be asked to contribute 10% of the cost of unworked hours, rising to 20% in August 2021. The Self Employment Income Support Scheme will also be extended until September 2021, with those who filed a 2019/20 Self-Assessment Tax Return now able to make a claim. Restart Grants will be available to businesses in England of up to £6,000 per premises for non-essential retail, and up to £18,000 per premises for hospitality, accommodation, leisure, personal c...

As part of the government’s coronavirus measures, businesses were given the option to defer their VAT payments between 20 March 2020 and 30 June 2020 under the VAT Payment Deferral Scheme. Initially, they were given until 31 March 2021 to pay any VAT liability accumulated in that period. However, it was later announced as part of the government’s Winter Economy Plan that these businesses would be able to opt to pay their VAT liability in up to 11 equal instalments over 2021-22 (interest free) using the VAT Deferral New Payment Scheme. Your Options In effect, if you deferred your VAT liability as part of the VAT Payment Deferral Scheme, you currently have three options for paying this: Pay the full amount of deferred VAT o...

Running a company imposes an abundance of filing obligations, those of common knowledge include accounts and company tax returns. However, there are also additional filing requirements that are often overlooked / incorrectly inputted despite the fact that omission / inaccuracy of these filing requirements can lead to fines and implications down the line. This article will highlight some of these filing obligations and the implications of failing to comply with these obligations. The Confirmation Statement The confirmation statement (annual return) is essentially just a check that the information Companies House has about a company is correct every year. Every company is required to submit one, including non-trading / dormant compan...

Stamp Duty Land Tax (SDLT) is payable on the acquisition of land and property over a certain price in England and Northern Ireland. Different taxes apply if the land/property is located in Scotland (Land and Buildings Transaction Tax) or Wales (Land Transaction Tax). The tax payable is calculated using tax bands. Where the price/consideration for a property is higher, portions of the consideration may be subject to SDLT at progressively higher rates of SDLT. As a result of Covid-19, the government has confirmed that the residential rates of SDLT for property transactions between 8 July 2020 and 31 March 2021 are as follows: Property or lease premium or transfer value SDLT rate Up to £500,000 Zero The next £425,000...

Every tax year, a taxpayer is entitled to accrue pension contributions in accordance with their annual allowance (AA). The standard AA currently stands at £40,000 per year, however if you are a “high-income taxpayer” (i.e. adjusted income of £240,000 or more p/a, and threshold income exceeding £200,000 p/a), this AA will be restricted by £1 for every £2 in excess of the £240,000 limit, to a minimum AA of £4,000 (2020/21). These allowances apply across all schemes a taxpayer belongs to and includes all contributions i.e. those made by the taxpayer, their employer and any third party who pays on the taxpayer’s behalf. Where a taxpayer’s contributions exceed the aforementioned AA (whether standard or tapered) they will no lon...

In July 2020, Chancellor Rishi Sunak asked the Office of Tax Simplification (OTS) for a review of the taxation of chargeable gains. This request, compounded with the financial support measures introduced in light of the coronavirus pandemic and the restriction of Entrepreneurs' Relief earlier this year led many tax advisors to speculate whether this would pave the way for increases in Capital Gains Tax (CGT) in the near future. The OTS has published the first of two reports setting out the results of the review, and has suggested (amongst other recommendations) that there should be a greater alignment of income tax and CGT. In other words, the current CGT rates should be effectively doubled. Under the current regime, CGT rates range b...

Boris Johnson addressed the nation last Saturday evening (31.10.20) to confirm a second national lockdown as a result of the failure of the tiered local approach to contain the soaring infection rates of Covid-19. The lockdown calls for restaurants, pubs, gyms and non-essential retail shops to remain closed during the period of the four week national lockdown which commences today (05.11.20) and is due to expire on 2 December 2020. Unlike the first lockdown, schools and universities will remain open. Due to this aforementioned announcement, the Government has also announced further support to help afflicted business and households which can be summarised as follows: Furlough Scheme The Coronavirus Job Retention Scheme (CJRS) or f...

On the sale of a house that you have lived in as a main residence, Principal Private Residence (PPR) Relief is typically available to reduce the gain by reference to your ownership period and the length of time that the house has been occupied as your main residence. PPR Relief applies to both the site of property and its surrounding gardens and grounds, provided that the total area does not exceed 0.5 hectares. Should the site exceed 0.5 hectares, relief may still nevertheless be available if it can be demonstrated that the larger area is required for "the reasonable enjoyment of the dwelling house . . . as a residence, having regard to the size and character of the dwelling house". In the recent case of Leslie and Catherine Phillip...

HMRC plans to send 14,000 "nudge" letters to individuals it believes may have made a taxable residential property disposal in 2018/19 but did not report it on their self-assessment tax return, thereby encouraging taxpayers to come forward and bring their affairs up to date. On the sale of residential property, capital gains tax may become payable on the gain. The taxable gain is calculated by taking the sale proceeds and deducting the original cost, the associated costs of disposal/acquisition, any costs incurred on enhancing the value of the property, and the annual exempt amount (£11,700 for 2018/19). If the taxpayer had lived in the property as their main residence throughout their period of ownership, then Principal Private Resid...